Tax on trading income: what is known and what is not

Tax on income from international financial trading has no simple answer in Vietnam. This article sets
out what is clear, what is not, and how to handle it prudently.

1. The general principle

Under the Personal Income Tax Law, individuals resident in Vietnam are obliged to declare taxable income
arising both inside and outside Vietnamese territory.

That principle is clear. What is not clear is how income from derivatives trading on a foreign platform
should be classified and calculated, because no specific guidance exists for this activity.

2. Why it is complicated

• There is no dedicated income category for this activity in the current guidance
  documents.
• How taxable income is determined is unsettled — on net profit for the year, on each
  trade, or on the amount remitted home.
• Loss offsetting — whether losses can be set against gains in the same period is not
  specifically regulated.

3. A prudent approach

While no specific guidance exists, the sensible handling is:

• Keep complete records. Annual trade statements, deposit and withdrawal receipts, bank
  statements for remittances. This is the most important thing, and it should be done from the start rather
  than when someone asks.
• Document money in and money out so you can show which part was original capital and
  which was profit. Without that record, every remittance can be treated as income.
• Ask a tax professional if the amounts are significant. This is the kind of question
  where general advice on the internet does not substitute for specific guidance.

4. About transfers

Large international transfers are recorded and reported by banks under the applicable rules. That does
not mean you are doing anything wrong, but it does mean your money leaves a trail, and you
should have documentation of its origin ready.

5. Records worth keeping, by category

• Complete annual trade statements, exported directly from the broker’s platform.
• Deposit and withdrawal history from the client
  area.
• Bank or e-wallet statements matching each deposit and withdrawal.
• The client agreement with the broker.
• A record of any rebates received.

Keep them year by year, in their original format. Some brokers retain history only for a limited period,
so download it regularly rather than assuming it will always be there.

6. What this article does not replace

This is general information, not tax advice. Rules change, and everyone’s circumstances differ. If your
income from this activity is significant, the cost of one session with a tax professional is far less than
the risk of handling it wrongly.

This article is for information only and is not investment advice. Conditions and fee levels are published by the brokers and can change at any time — check with the broker you actually use. Leveraged forex and CFD trading carries a high level of risk and can cost you your entire deposit.